UK inflation slows sharply, boosting BoE and Sunak

STORY: British inflation cooled by more than expected in October.

Official data showed Wednesday (November 15) that annual consumer price inflation plunged to 4.6%, from September's high of 6.7%.

Household energy prices dropped from a year ago, while high price growth in the service sector eased.

The rise in consumer prices was also the smallest in two years.

The data showed key inflation measures watched closely by Britain's central bank dropped more than expected.

Core inflation, which takes out energy and food prices, fell to 5.7% from 6.1%, and service sector inflation was also down.

The data offered some relief to the Bank of England and Prime Minister Rishi Sunak.

He had promised to halve price growth this year.

But many economists and opposition lawmakers say the government blamed external factors for the rise in inflation, and then tried to take credit for the later drop.

Britain also still has the highest rate of consumer price growth among Group of Seven nations - slightly above France.

There was also a warning from one leading analyst at Barclays.

They said the UK economy is facing stagflation, and the road ahead will still be challenging.